Barnes & Noble cuts guidance on falling sales

Barnes & Noble reported a bigger than expected drop in sales and loss of more than $14 million for its most recent quarter. Bobbi Rebell reports.

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The read on Barnes & Noble's sales: not good. The country's top book retailer reported a bigger than expected drop in sales and loss of more than $14 million for its most recent quarter.
Adding to the pain: it expects full-year comparable sales to fall.
The stock knocked down on the news.
But Tom Kee, who runs Stock Traders Daily, sees an opportunity.
(SOUNDBITE) THOMAS KEE, PRESIDENT & CEO, STOCK TRADERS DAILY (ENGLISH) SAYING:
"The stock, although it has had declining revenues, and although it has had declining earnings, also trades on par with its net asset value, which makes that a very interesting story, and an upside proposition for the stock itself."
But he warns the math only works if Barnes & Noble can stabilize sales and earnings.
The chain, which has 640 locations, has been trying to attract shoppers by offering merchandise such as toys and craft brewing kits.
But Barnes & Noble's biggest challenge is competition from online retailers, like Amazon.